Michael Hudson: Europe should ‘make a break from US’ to avoid austerity

Date of publication: 11 06 2016, 12:16

Michael Hudson, President of the Institute for the Study of Long-Term Economic Trends, warned that the ongoing standoff between the G-7 countries and Russia will be in place, unless the group stops taking cues from NATO and the United States.

The interview came after German Minister for Economic Affairs and Energy Sigmar Gabriel called for the G-7 nations to allow Russia to rejoin the economic group as soon as possible.

Hudson, for his part, warned Europe against being politically subjugated by the United States.

“As long as Europe remains almost a political colony of America they can look forward to further austerity and further industrial shrinkage,” he said.

Touching upon relations between the G-7 and Russia, Hudson also warned against Washington’s influence on the group.

“The relations will not improve much, unless the G-7 is willing to make a break from the United States and NATO and as long as G-7 countries are basically letting their foreign policy being set by the military commanders put in charge by NATO,” he said.

Meanwhile, in an interview with the German website Russlandkontrovers, Sigmar Gabriel called Russia an important global player and said that long-term exclusion of the country from the group would only deepen existing divisions and would not help achieve a political solution.

Gabriel also stressed that despite current tensions and problems, Russia remained an important economic partner for Germany. He added that it was particularly important to strengthen international bodies when there were differences to overcome.

The comments of the German Minister for Economic Affairs came a few days after a top advisor to German Chancellor Angela Merkel said it was too early to discuss the lifting of sanctions against Russia.

Earlier this week, the Financial Times reported that with some EU countries calling for softening the restrictive measures against Moscow, Brussels is, however, set “to roll over its Ukraine-related sanctions against Russia for a further six months.”

The extension of the anti-Russian sanctions will be high on the agenda of the two-day EU summit, which kicks off on June 28. Hungary, Cyprus, Greece, Italy and Slovakia are expected to call for the easing or lifting of the restrictive measures.